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No Change to IR35 Legislation after all

At the time of the general election, we were happy to hear that all of the major political parties said that they were going to do something to look at IR35. But here we are. It seems like every single election ever, it was just hot air and bluster to get our votes. 

It’s happening, folks.

Many have called for it to at least be delayed, but no, it will be coming into force on April 6thof this year, and with it, many businesses, accountants and umbrella companies will be forced to make radical changes to their payroll systems to take it into consideration. 

What is worse, is we still don’t exactly know exactly what those legislations will be and we won’t know until the Spring Budget in March. So that will give everyone a matter of weeks to become compliant. This is at a time when, following Brexit, many businesses will also be needing to make changes with how they work with European businesses, suppliers, partners and employees. 

It couldn’t be worse. (But then they could always surprise us, so maybe we shouldn’t go there).

The planned review will only go so far as to examine how IR35 is implemented, not the actual legislation itself, which comes as a disappointment to, well, almost everyone besides HMRC, frankly.

This will inevitably have an impact on the contractor market and the employment market overall. As more and more people are choosing to go self-employed and work for themselves, the employment pool for regular, waged employees decreases. Add to that the number of EU employees who will be heading home as a result of Brexit and the reluctance of some employers to hire contractors as a result of being spooked by these IR35 headaches, and we could collectively, all find ourselves in a bit of a pickle.

While we sit back with bated breath and wait to see what the Spring Budget announcement brings, you can be assured the very best accountants will be with you along the way and on top of any changes as they happen.

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